investors Bank have profit on America's largest bank of America Merrill Lynch is a 38% drop in profits for the first three months of the year 2011 compared with the previous year reported disappointed.It made a profit of $2 billion (￡ 1. 23bn), but the Bank residential mortgage unit lost $2. 39bn, as debt not been repaid.
High unemployment and falling real estate prices have seen us many households falling behind on their mortgages.
Analysts were disappointed by the figures the rivals of the JP Morgan after came unexpectedly good results.
"I think the reason seems to be, Bank of America fights with the mortgage mess and clean up, what is there," a market strategist at GFT said David Morrison global markets.
The first quarter result was 2010 made an improvement on the loss of $1 billion dollars in the last quarter.
Mortgage problemsThe Bank has not paid not only the problem of debt facing, but has excluded houses also costs due to the problems and delays with his attempts.
The Bank said it had lost $ 874 million in "Mortgage-related of related assessments and disclaimers".
1 Some billion $ costs came from not in the position, which then fell to sell in value on mortgages.
Bank of America, the United States of the largest bank, does household business half of the country.
JP Morgan, the second largest US Bank, had also said that on your mortgage high losses suffered it in relation to facilities, including related costs associated with delays.
"Unfortunately, further these losses for a while," JP Morgan Chief Executive Jamie Dimon said last week.
Analysts say, Bank of America, the mortgage market particularly exposed, because it is acquisition of Countrywide Financial in 2008.
Markets were the results with the bank stocks will fall 1% disappointed.
The Bank announced that Bruce Thompson, the chief risk officer, also chief finance officer will be in July.
Chuck Noski, the current CFO, will be Deputy Chairman of the Bank of America.
Mortgage losses were one of the main causes of the financial crisis in 2008 which of America saw Bank merging with investment bank Merrill Lynch.
Heavy losses in the merged entity the Bank forced federal funds through the troubled asset relief program strongly depends on.
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